usaldusfondi

A usaldusfond, or trust fund in English, is a legal arrangement where a person or entity, known as the trustee, holds assets for the benefit of another person or entity, known as the beneficiary. The trust is created by a settlor, who transfers ownership of the assets to the trustee. The terms of the trust are outlined in a trust deed, which specifies how the assets should be managed and distributed.

Usaldusfondid can serve various purposes, including estate planning, asset protection, and charitable giving. For instance, a settlor might establish a trust to provide for minor children or individuals with special needs, ensuring their financial well-being even after the settlor's death. Trusts can also be used to shield assets from creditors or to minimize estate taxes.

There are different types of usaldusfondid, such as revocable and irrevocable trusts. A revocable trust can be altered or terminated by the settlor during their lifetime, offering flexibility. An irrevocable trust, on the other hand, generally cannot be changed once established, providing more robust asset protection and tax benefits. The trustee has a fiduciary duty to act in the best interests of the beneficiaries and to manage the trust assets prudently, adhering strictly to the terms of the trust deed.